Report: Michael Hill to Close Eight U.S. Stores
June 10, 10
Retailer Michael Hill will close eight of its 17 U.S. stores, the New Zealand Herald newspaper reported Tuesday.
Brisbane, Australia-based Michael Hill entered the U.S. market in 2008, when it acquired 17 stores from bankrupt Whitehall Jewelers. Fifteen of the stores were located in Illinois, mostly in and around Chicago, while two were in Missouri-specifically in St. Louis and St. Peters.
The report indicates that the two Missouri stores will be closing, as will some Illinois stores. Only Michael Hill's Chicago-area stores will remain.
Company Chairman Michael Hill told the Herald Tuesday that the company has been testing its retail concept in the U.S. market for the past 20 months, but that it was going up against some of the toughest retail conditions in recent memory. The decision to consolidate came about after a full review of the business, including an analysis of sales results, operational and real estate issues.
The nine remaining stores will be refurbished to bring them in line with Michael Hill's latest global retail design concept, the Herald reports.
Operating losses for Michael Hill in the U.S. are expected to total about $6 million for the 2009-2010 fiscal year. The store closures should reduce losses for the 2010-2011 fiscal year, Hill told the Herald.